On June 28, Bronnie's provided consulting services to Maisie Company. Bronnie's billed Maisie on July 2 for $800 related to these services. On July 5, Maisie paid the invoice in full. Bronnie's only cost related to this sale was $250 in salaries expense. Bronnie's paid the salaries on July 3. Assuming Bronnie's Company has a June 30 year end, the company's profit for the Maisie's job on the June 30 financial statements should be
A) 0.
B) $800.
C) $550.
D) $250.

Question

Quizplus · Accepted Answer

The profit for the Maisie's job on the June 30 financial statements is $550, calculated as the billed amount ($800) minus the cost related to the sale ($250). The timing of billing, payment, and expense payment does not affect the recognition of revenue and expenses for the job completed before the year-end.

On June 28, Bronnie's Provided Consulting Services to Maisie Company